According to reports, debt is piling up for bookseller Borders, forcing them to close hundreds of stores and file for bankruptcy. According to Reuters, the company will shut 200 of its retail outlets, that’s about 30 percent of its stores. Those bookstores that are closing are a mix of Borders stores and Waldenbooks shops.

Those stores that are being closed are the weakest performers in sales. “Borders will not comment or speculate upon Borders’ future course,” a company spokesman told Reuters. “If and when the company has something to disclose, it will do so.”

There are already fewer retail shops in Borders’ portfolio. The number of Borders superstores has remained roughly the same, but they have closed many of the Waldenbooks locations already. There were 490 locations in 2007, but by late 2010 that number had dropped to 168.

Borders owes millions to six major publishers for last year’s inventory. That’s forced some publishers to already stop shipping to the company. Publishers could get the rough end of the deal and they’re hoping for a say in how low books are marked down during liquidation sales. Reuters says that Borders is working with publishers to hash out details on terms. If publishers agree to extend credit to Borders they may get paid faster once the bankruptcy is finalized.

Several liquidators are hoping for the Borders job including Tiger Capital Group, SB Capital group, Gordon Brothers Group and Great American Group according to a Reuters report. It’s believed that increased online competition is ultimately what hurt Borders. Combined with their slow entry into the digital world, this once pioneer of the book superstore is now getting pushed to the back of the shelf.

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